28 December 2011
SilverDoctors: APMEX Hikes Premium for 90% 'Junk' Silver $1 on Pa...
SilverDoctors: APMEX Hikes Premium for 90% 'Junk' Silver $1 on Pa...: The cartel has successfully smashed paper silver futures prices 6% lower on the day, nearly a full $2 on the day at the lows near $26.78. W...
SilverDoctors: JB Slear on Today's Gold and Silver Smash
SilverDoctors: JB Slear on Today's Gold and Silver Smash: Gold and silver delivery man JB Slear states that physical metal purchasing has picked up DRAMATICALLY with today's PM smash. Some quick t...
SilverDoctors: The Exchange Stabilization Fund & Its History
SilverDoctors: The Exchange Stabilization Fund & Its History: For those who have not yet seen it, Eric deCarbonnel of MarketSkeptics has produced a 5-part video series on the Treasury's Exchange Stabili...
Morgan Stanley to Cut 580 Jobs in New York
By BEN PROTESS
Morgan Stanley will slash 580 jobs in New York as part of a broader wave of layoffs underway at the bank, according to a public filing.
In a notice filed with the New York State Department of Labor, Morgan Stanley cited “economic” woes as the cause of the layoffs. The cuts began Dec. 15 on a “rolling” basis, according to the filing, known as a WARN notice, or Worker Adjustment and Retraining Notification.
Earlier this month, Morgan Stanley said it would cut 1,600 jobs, or 2.6 percent of its work force, by the first quarter of 2012. The bank plans to spread the round of reductions across all divisions, including investment banking and trading.
The layoffs at Morgan Stanley are the latest round of severe cutbacks on Wall Street, which has suffered a year of humbling returns and massive cost-cutting. Citigroup recently announced it would shed 4,500 jobs. Bank of America and Goldman Sachs, too, have begun carrying out major staff reductions. In June, Goldman told the New York Department of Labor that it would layoff 230 New York workers through March 2012.
Morgan Stanley will slash 580 jobs in New York as part of a broader wave of layoffs underway at the bank, according to a public filing.
In a notice filed with the New York State Department of Labor, Morgan Stanley cited “economic” woes as the cause of the layoffs. The cuts began Dec. 15 on a “rolling” basis, according to the filing, known as a WARN notice, or Worker Adjustment and Retraining Notification.
Earlier this month, Morgan Stanley said it would cut 1,600 jobs, or 2.6 percent of its work force, by the first quarter of 2012. The bank plans to spread the round of reductions across all divisions, including investment banking and trading.
The layoffs at Morgan Stanley are the latest round of severe cutbacks on Wall Street, which has suffered a year of humbling returns and massive cost-cutting. Citigroup recently announced it would shed 4,500 jobs. Bank of America and Goldman Sachs, too, have begun carrying out major staff reductions. In June, Goldman told the New York Department of Labor that it would layoff 230 New York workers through March 2012.
'Buying silver is better than buying gold'
By Daniel Vundy
Silver can be purchased as easily as Gold can, but Silver is the better purchase. Both gold and silver are precious metals that have tangible value. The benefits of each metal have much in common, but there are also differences that must be understood before making an investment.
Both metals are a storehouse of value. Regardless of what happens in the world, a person who has a portion of their wealth invested in gold and silver will have a balance in their investment portfolio. If the world's stock markets and currencies drop significantly (which is very likely happen in the near future), gold and silver will hold their value and likely increase in value offsetting losses in other areas of investment. The more uncertain you feel about the future, the higher percentage of your wealth can be transferred to these precious metals.
Currencies are beginning to lose value all around the world. Due to budget deficits of governments on every continent, and weak economic growth, the future of many of the world's largest nations are coming into question. There is no longer a safe haven to keep your wealth. This is the main reason people have purchased precious metals. They have value and are tangible. Currencies are paper. Granted they are strongly related to a nation's economic output, but in a declining economic environment that is characterized by large deficits, the long term value of the currencies questionable.
Some have tried to move their wealth into gold, but it is silver that is the better investment. All of the reasons that Gold is considered valuable apply to silver. But there are additional demands for Silver in the world. It is true that gold is worth more on the open market, and certainly it is more glamorous, but much of the value of gold is dependent upon people's perception of its value. They believe that it is valuable and this is what makes it worth money. Outside of jewelry, gold doesn't have a lot of applications. It's scarcity combines with its cosmetic appeal is a large part of what creates the value of gold.
Silver on the other hand is also a metal that is deemed attractive and is also used to make jewelry. But there are many industrial uses for it as well. Silver is an excellent conductor and is needed in a variety of high quality and high performance electronic systems. It is also in demand with photography, optics, dentistry, and many other industrial and commercial applications. There will always be a demand for silver because of its variety of uses.
Silver can be purchased as easily as Gold can, but Silver is the better purchase. Both gold and silver are precious metals that have tangible value. The benefits of each metal have much in common, but there are also differences that must be understood before making an investment.
Both metals are a storehouse of value. Regardless of what happens in the world, a person who has a portion of their wealth invested in gold and silver will have a balance in their investment portfolio. If the world's stock markets and currencies drop significantly (which is very likely happen in the near future), gold and silver will hold their value and likely increase in value offsetting losses in other areas of investment. The more uncertain you feel about the future, the higher percentage of your wealth can be transferred to these precious metals.
Currencies are beginning to lose value all around the world. Due to budget deficits of governments on every continent, and weak economic growth, the future of many of the world's largest nations are coming into question. There is no longer a safe haven to keep your wealth. This is the main reason people have purchased precious metals. They have value and are tangible. Currencies are paper. Granted they are strongly related to a nation's economic output, but in a declining economic environment that is characterized by large deficits, the long term value of the currencies questionable.
Some have tried to move their wealth into gold, but it is silver that is the better investment. All of the reasons that Gold is considered valuable apply to silver. But there are additional demands for Silver in the world. It is true that gold is worth more on the open market, and certainly it is more glamorous, but much of the value of gold is dependent upon people's perception of its value. They believe that it is valuable and this is what makes it worth money. Outside of jewelry, gold doesn't have a lot of applications. It's scarcity combines with its cosmetic appeal is a large part of what creates the value of gold.
Silver on the other hand is also a metal that is deemed attractive and is also used to make jewelry. But there are many industrial uses for it as well. Silver is an excellent conductor and is needed in a variety of high quality and high performance electronic systems. It is also in demand with photography, optics, dentistry, and many other industrial and commercial applications. There will always be a demand for silver because of its variety of uses.
UK prepares emergency measures for euro collapse to prevent an influx of people and money
- Value of the Pound could surge if euro fails
- Britain's borders could be temporarily sealed against economic refugees
- Many experts believe the 17-member currency cannot survive the coming year
- Rich individuals from Greece and Portugal are already moving money into UK
- Italian bond auctions ease fears about eurozone debt crisis and help FTSE 100 to make cautious gains
Ministers are considering draconian plans to prevent a flood of money and people heading to Britain from Europe if the ailing single currency collapses.
Experts fear that the collapse of the euro would lead to the widespread movement of both people and money – with potentially damaging consequences for Britain if left unchecked.
The Treasury has drawn up contingency plans to prevent investors shifting huge sums of cash from the Eurozone to Britain – amid fears it could lead to a surge in the value of the Pound.
The Treasury has drawn up contingency plans to prevent investors shifting huge sums of cash from the Eurozone to Britain
The Foreign Office is also working on contingency plans for the emergency evacuation of thousands of British expats and holidaymakers from stricken countries.
SilverDoctors: The Coming Financial Border Controls: Its Berlin A...
SilverDoctors: The Coming Financial Border Controls: Its Berlin A...: As nearly always, Martin Armstrong's latest is a MUST READ!! Armstrong discusses financial border controls, heavy doses of history pertinen...
SilverDoctors: Silver Now Nose Diving 4%
SilverDoctors: Silver Now Nose Diving 4%: Silver has now nose dived to 27.59 with gold also dipping to 15.73.
27 December 2011
SilverDoctors: Ukraine to Issue Gold, Silver Investment Coins
SilverDoctors: Ukraine to Issue Gold, Silver Investment Coins: The Ukranian National Bank is launching production of Ukranian gold and silver investment coins. With a total first issue of 4-5 thousand c...
SilverDoctors: JB Slear- Cash Out Your IRA & Convert to PHYSICAL ...
SilverDoctors: JB Slear- Cash Out Your IRA & Convert to PHYSICAL ...: COMEX gold and silver delivery man JB Slear has answered SD reader Bryan's question regarding the 'safety' of storing precious metals in a C...
SilverDoctors: Treasury to Raise Debt Limit Dec 30th Another $1.2...
SilverDoctors: Treasury to Raise Debt Limit Dec 30th Another $1.2...: QE TO INFINITY......AND BEYOND!!! U.S. TREASURY SAYS DEBT LIMIT TO BE RAISED BY $1.2 TRILLION U.S. DEBT TO BE $100 BILLION WITHIN LIMIT O...
Tradition Analytics Asks The $64K Question: Has The Fed Run Out Of Options To "Grow" Credit Money?
Last week, we presented an equity "valuation" analysis based on Austrian economics, which concluded that the only thing that matters for the economy and for asset prices in general, is the amount of credit money moving one way or another at the margin, ie how active global central banker printers are. Unfortunately, in this economy of record correlations, and in which alpha creation is now impossible, this may well be the only approach to capital markets that works any more. Today, Tradition Analytics takes this analysis from the micro the macro level, explaining why the US, and global, economy is now like a shark - cash has to move (inward) or else the economy will suffocate. Naturally, nothing could make Bernanke happy- according to Tradition, "To sustain the up-cycle banks will have to pump out net new credit probably in the order of about $1 trillion in the coming 8-10 months, even larger than the $700 billion pumped out in the previous 8-10 months." Alas there is a problem with this, very much along the lines of what we discussed last week, which is that the new crude baseline is now a triple digit number, not one in the $30s or even $60s: "it is going to be difficult to sustain this level of credit expansion, not only due to the sheer gravity of the inflation problem that would follow, but also simply due to the fact that it is always increasingly difficult to extend more credit at the margin, and this time into an economy that is already steeped in credit."
Complicating matters is the long-discussed contraction of the business cycle, as volatility swings get ever wilder and with a greater amplitude, courtesy of record central planning encroachment which swings the global economy from one extreme to another with reckless abandon. To Tradition "it would suggest that cycles are getting progressively shorter in the great debt era and this in turn means the potential loss of monetary control, policy overreaction and misdirection, macroeconomic value destruction over time, and the risk of very deep, acute financial and banking crisis." In other words: the Fed is now boxed in a corner (and has been for years, maybe decades, in fact since its inception in 1913), and anything it does will push the pendulum to either one or another extreme. In this light, what consumer confidence does today (whereby consumers are confident because they are confident) is beyond ridiculous.
The bottom line from Tradition:
Complicating matters is the long-discussed contraction of the business cycle, as volatility swings get ever wilder and with a greater amplitude, courtesy of record central planning encroachment which swings the global economy from one extreme to another with reckless abandon. To Tradition "it would suggest that cycles are getting progressively shorter in the great debt era and this in turn means the potential loss of monetary control, policy overreaction and misdirection, macroeconomic value destruction over time, and the risk of very deep, acute financial and banking crisis." In other words: the Fed is now boxed in a corner (and has been for years, maybe decades, in fact since its inception in 1913), and anything it does will push the pendulum to either one or another extreme. In this light, what consumer confidence does today (whereby consumers are confident because they are confident) is beyond ridiculous.
The bottom line from Tradition:
- The US economy, using growth in M2 money supply as a cyclical measure, has now been in a boom phase since the start of 2010. This 2-year boom is coming to an end. Credit and money growth has been running at such breakneck speeds that in order for the banking system to sustain the boom it would need to pump out roughly $1 trillion dollars’ worth of loans in the coming 8-10 months.
- If that were to happen, inflation will quickly become the most import problem for the US economy and the boom would be extended to such a degree as to make not only the inflation threat enormous but the crash risk even bigger at a later date.
- However it is going to be difficult to sustain this level of credit expansion, not only due to the sheer gravity of the inflation problem that would follow, but also simply due to the fact that it is always increasingly difficult to extend more credit at the margin, and this time into an economy that is already steeped in credit.
- The resulting bust could be sharp as 2012 unfolds. By the middle of the year we expect that the slowdown in credit expansion will have forced the productive sector into another liquidative bust phase. Employment numbers will begin deteriorating and production data will likely suffer again.
- If we are correct in this outlook then the current US boom phase may last little past 2-2½ years. This means that since 1991 the three US boom cycles have roughly halved in length from 10 years (1991-2001), to 5 years (2003-2008), and 2-2 ½ years (2010-2012). The implication of this should not be underestimated. It would suggest that cycles are getting progressively shorter in the great debt era and this in turn means the potential loss of monetary control, policy overreaction and misdirection, macroeconomic value destruction over time, and the risk of very deep, acute financial and banking crisis.
Gold price set for hyperbolic increase
I recently posted an article for GoldMoney showing how US True Money Supply (TMS) appeared to be growing at a hyperbolic rate, and that gold was also on a hyperbolic course. The difference between hyperbolic and exponential is a hyperbola’s rate of growth increases with time, while exponential growth does not. Hyperbolic growth in the quantity of money ends with hyperinflation, while exponential growth can go on for ever. Both TMS and the dollar price of gold are pointing to a hyperinflationary outcome. This article explains why this might be so.
There are five apocalyptic engines pushing the growth in US money supply: they are the government’s budget deficit, its debt trap, the financial condition of the banks, the delusion of Keynesian solutions, and lastly simple compounding arithmetic.
SilverDoctors: Gold & Silver Smash Commences with Illiquid Holida...
SilverDoctors: Gold & Silver Smash Commences with Illiquid Holida...: What is the absolute best friend of the cartel? Illiquidity. The evening (EST) Globex open after the market holiday Monday has provided ...
Did Bankers Deliberately Crash MF Global to Crash Gold and Silver Prices?
Did bankers use the MF Global to suppress gold and silver prices and create the panicked appearance of collapsing precious metals to give themselves additional precious time to delay the crash of the Euro and the US Dollar? As crazy as this sounds, a closer investigation of some key data seems to imply this possibility. Though bankers claim that they created futures markets to provide a mechanism for commodity producers to hedge against volatile market prices, I have never bought the kool-aid the bankers were selling in this explanation for the rationale behind their creation of futures markets. Given that today, futures and spot prices for gold and silver in the short-term are entirely set by banker manipulation of the supply and demand for paper derivatives that often have no backing of any physical metal, I believe that bankers created futures markets for the explicit intent of allowing themselves to manipulate the prices of commodities and to enrich themselves, and themselves only, through the process of alternately and artificially inflating and deflating prices as would not be allowed in any type of free market. In other words, bankers invented futures markets to allow themselves to siphon off and steal money from other parties that wanted to invest in commodities with a mechanism, risk-free to them, that required deception and zero honest work and zero integrity.
The futures markets in commodities is such a deceptive market that it is hard to know even where to begin to unravel its many mechanisms of deceit in all their glory. Futures contracts traded on the world’s largest commodity markets such as the COMEX in New York and the LBM in London allow bankers to commit reverse alchemy, turning real physical gold and real physical silver into nothing but false paper contracts and air. Secondly, through futures contracts traded in New York and London, bankers routinely defy the economic principles of supply and demand, and set short-term prices for gold and silver that literally have zero to do with the supply and demand dynamics of the physical gold and physical silver market. In the world of physics, such an illogical, comparable feat of deception would be the indefinite suspension of the law of gravity. Bankers invented paper derivative gold and silver markets to allow themselves to literally defy and suspend every single sound economic principle that exists.
This is important to understand because not only does understanding this concept make the bulk of what you learn in business school a lie and entirely useless, but also because bullion banks such as Deutsche Bank, Citibank, JP Morgan, Goldman Sachs et al that serve as the puppet conduits for more powerful families that control Central Banks, routinely used to lease physical gold into the open market as their primary mechanism to suppress the price of gold and silver. However, as their mechanism of fractional reserve banking began to threaten the viability and utility of the most widely used fiat currencies in the world, the USD and the Euro, bankers understood that they needed to utilize and/or create another mechanism to suppress gold and silver prices that could replace selling physical PMs into the open market as they no longer wished to give up a solid asset with no third party counter-risk for what they knew they were turning into essentially worthless pieces of paper. Thus bankers increasingly turned to the paper futures markets to manipulate and control the price of gold and silver and also served up additional bogus derivative products to the public like the GLD and SLV ETFs. Bankers knew that there was no way they could possibly control the price of gold and silver if the supply and demand determinants of physical gold and physical silver had anything to do with the price, so they conspired to fool the world into believing that the fake paper price they set was set by the supply and demand of the physical markets.
Collapsing OI of Gold/Silver Futures Markets Directly Related to MF Global Collapse?
And here’s where MF Global enters the banking cartel gold and silver price suppression scheme. Today, short-term futures and spot prices of gold and silver have almost nothing to do with the physical supply and demand dynamics of gold and silver, as odd as that may sound. Bankers created the futures markets and paper derivatives in gold and silver to kill free markets and for the express purpose of suppressing gold and silver prices. Today we literally have no idea what the free market price of gold and silver should be or could be, besides the fact that both would be multiples higher than their current price, because of the fake paper market in gold and silver that the bankers created.
As well, bankers ensured that they armed a legion of worker bees in commercial investment firms all over the world that would represent these paper derivatives backed by very little physical gold and silver to their clients as the equivalent of investing in 99.999% pure physical gold and silver. In doing so, the worker bees thereby lured people all over the world into what will turn out to be the fatal mistake of not buying millions of troy ounces of physical gold and silver and instead buying their offering of fool’s gold and fool’s silver. When we receive a massive default of gold and silver futures contracts that stand for delivery on the COMEX or LBM, or if the SLV and GLD default, then, and only then, will the public start to see true price discovery of physical gold and physical silver in action. However, for clients of MF Global, unfortunately, they have already experienced the mistake of buying fool’s gold and fool’s silver from the bankers and have received air in exchange for gold and silver futures contracts they purchased that stood for delivery.
Bankers invented fake paper gold and silver contracts, because they knew that if they could not fulfill contractual obligations to deliver physical gold and physical silver because the contracts were a binding lie to begin with), that they could always renege on these contractual obligations and give the people the nothingness they truly owned in return. And thus, we have the story of MF Global.
Ratings agencies downgraded MF Global on Oct 25 and MF Global declared bankruptcy on Oct 31. If one scours the data that the Chicago Mercantile Exchange (CME) releases via its aggregated Commitment of Trader (COT) reports during this time period, one may not notice any data that immediately stands. However, investigation of the disaggregated reports reveals far more interesting patterns that almost undoubtedly can be traced back to the collapse of MF Global. In a period just preceding the MF Global collapse, from late August to mid October, the open interest (OI) in longs in gold and silver futures within the Managed Money category collapsed by 33.75% in gold (202,430 to 136,103) and 44.74% in silver (29,849 to 16,494). During this exact same time period, shorts in the gold and silver futures in the Managed Money category increased by 19.3% and 83.82% respectively (see the chart below). Within the Managed Money category, between Sept 13th and 27th, in just a two-week period, the drop in OI in the longs in gold and silver futures was even more pronounced, with a 25.41% plunge and 34.3% plunge in silver. I imagine if someone could trace the connection of this plunge in OI in the Managed Money category in the gold and silver futures markets, one would discover that a good deal of the plunge was somehow directly tied to the impending MF Global bankruptcy and its freezing and/or liquidation of gold and silver futures accounts in its possession.
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